Michigan's unemployment rate drops to 11.7 percent in December

Michigan’s seasonally adjusted jobless rate for December dropped for the fourth consecutive month to 11.7
percent, down from 14.5 percent a year ago, according to the Department of Energy, Labor and Economic Growth. The national jobless rate decreased by half a
percentage point over this period.

Unemployment in Michigan fell in December by 42,000; however total employment edged upward by only 5,000. This resulted in a 37,000 reduction in the state’s labor force over the month.

“The drop in the state’s December jobless rate primarily reflected
a reduction in the number of unemployed individuals seeking jobs.
Employment levels in Michigan have been flat since the summer,” said
Rick Waclawek, director of DELEG’s Bureau of Labor Market Information
and Strategic Initiatives. “Overall in 2010, Michigan’s labor market
stabilized after one of the worst labor market years on record in 2009.”

Michigan's average unemployment rate for 2010 was 13.1 percent, the first decrease in the annual jobless rate since 2005. The average for 2009 was 13.6 percent.

“The numbers indicate we’re moving in the right direction than that of the nation, but it’s not good enough until all Michiganders are back to work,” said Michigan Gov. Rick Snyder. “Economic development, diversification, and improving our business climate are key to boosting our labor force and increasing employment in all sectors of our economy.”

According to DELEG data, from December 2009 to December 2010, the number of unemployed in Michigan fell by 20.6 percent while nationally, unemployment declined by only 4.8 percent over the same period.

Michigan’s payroll jobs were little changed in December, declining slightly by 7,000 to 3,832,000. From December 2009 to December 2010, the state’s payroll jobs edged down by 13,000 or 0.3 percent. Over the year significant job gains were confined to the state’s manufacturing sector, which added 11,000 jobs.